Binance Has Prevented Over $2.4B in Potential Losses From Scams This Year

Binance, the world’s largest cryptocurrency by trading volume, announced it has prevented over $2.4 billion in potential losses from scams and fraud from January to July 2024. According to Binance, this prevention has protected more than 1.2 million users globally from financial losses.

How it Happened 

In a blog post on Tuesday, Binance noted that this prevention was possible due to a robust risk engine. The exchange elaborated that this risk engine performs real-time monitoring, using a combination of artificial intelligence (AI)-based and manual review that allows the platform to “dynamically” identify suspicious transactions and respond swiftly to protect its users.

According to Binance, this monitoring system can be found across all its platforms, protecting users in various domains, including peer-to-peer (P2P) trading, payments, crypto network withdrawals, and more.

Binance pointed out that most suspicious transactions are flagged at the withdrawal stage, where criminals attempt to divert stolen funds from the exchange’s robust security measures. Out of the $2.4 billion in prevented losses, withdrawals linked to the scams accounted for a staggering $1.1 billion. This represents 45% of the total amount recovered.

User Vigilance Remains Crucial

While Binance continues to leverage sophisticated tools to prevent potential threats, it emphasizes the importance of users’ vigilance as bad actors continuously seek new ways to bypass crypto platforms’ defenses.

“We urge our users to remain vigilant and take responsibility for their own security. While our team has implemented extensive measures to protect your funds, ultimately, users themselves play the largest role in safeguarding their assets. Stay informed, use strong security practices, and be cautious of potential scams,” Rohit Wad, Chief Technology Officer at Binance said.

In addition to preventing $2.4 billion in scam and fraud losses, Binance also recovered $73 million in misplaced or lost funds for external parties.